Tom Entwistle reviews the book.
Carl Bayley is the author of more than twenty ‘Plain English’ TaxCafe published tax guides designed for the layperson and the non-specialist. His aim is to help families, landlords, and other business owners understand the taxes they face and make savings through sensible planning and by having the confidence to know what they can claim.
A former chartered accountant with one of the ‘Big 4’ accountancy firms, Carl qualified as a double prize-winner before specialising in taxation. A former Chairman of the Tax Faculty of the Institute of Chartered Accountants in England and Wales, he now concentrates on writing books on tax matters from his base in Scotland.
Carl’s speciality is his ability to take the weird, complex world of taxation and set it out in the kind of clear, straightforward language taxpayers can understand. As he says, “My job is to translate ‘tax’ into English.”
It’s been said that it’s easier to make money than it is to keep it. That’s certainly true of today; inflation constantly erodes wealth at the best of times when inflation is under control. When it runs rampant, your hard-earned wealth is quickly eroded. Secondly, taxation: if the tax regime borders on confiscation, it can sap one’s energy and result in less tax being collected.
The old chestnut says, there are only three things in life for certain: death and taxes. And perhaps the more insidious of these taxes is inheritance tax (IHT), with capital gains tax (CGT) a close second. None of us likes to pay taxes, necessary as they are to keep the country functioning, but some are more palatable than others.
In my view, both inheritance tax and capital gains tax, when taken beyond a certain level, are anti-growth. One may take a view that they assist equality, they shift wealth. But they also limit the growth of wealth. Take the present situation. Inheritance tax has been imposed on small family businesses and family farms when there was none before, and capital gains tax has been increased.
Have those changes led to increased incentives to grow family farms and small to medium sized enterprises (SMEs)? You can bet your mortgage on the fact they haven’t. I’m aware of several small business owners and farmers right now who have put investment and employing people on hold. Virtually every pound they invest or borrow to invest in their businesses may eventually be swallowed up by one of these taxes.
Taxes are necessary to maintain public services and particularly the NHS, but they can become excessive and reach a point, and I would argue we have already reached that point in Britain, where marginal increases in some taxes are not just negative and demoralising to business people, as Arthur Laffer* points out, they result in a lower tax take for the exchequer.
That’s already manifesting with the UK’s January tax take around £5bn less than expected by the Treasury, as the economy flatlines and as the black market begins to thrive. Cash trading has multiplied, and profits are being curtailed through lack of investment.
Show me the incentive and I’ll show you the result said Charlie Munger. What is the result? When taxation penalises people, they ration the amount of effort they put into working and they ration the money they are prepared to invest and put at risk. Others are working outside the main economy, dealing only in physical cash; there’s been a marked decrease in card payments over the last few months.
Secondly, and conversely, people put a lot of time and effort into trying to avoid paying the tax. They also spend a lot of money paying for professional advice. Which brings me to the focus of this review - Carl Bailey’s book Shelter your Family for the Taxman: How to Save Inheritance Tax 2025/26 published by TaxCafe.
The book is structured logically, starting with the fundamentals of IHT—what it is, who it affects, and how the tax is calculated.
In almost 300 pages Mr Bayley covers in detail the various aspects of inheritance tax, capital gains tax, small businesses, lifetime gifts, pensions, property, family investment companies, and trusts. He uses case studies throughout to explain applications to real life situations and then goes into various tax-saving strategies, including:
In each chapter practical examples are used to illustrate how different strategies work in real-life scenarios. This is particularly useful for those trying to apply the guidance to their own estate.
Clarity, practicality and the interpretation of these sometimes-complex concepts into plain English, Mr Bayley avoids jargon and he explains the tax process and tax planning in a straightforward manner, making the book digestible even for those with no financial background.
The book is right up to date given that the Autumn Budget 2024 changes, and the technical data that followed, occurred relatively recently; his guidance reflects the very latest legal framework as it stands at the time of publication.
The book does not just skim the surface; it delves deep into every possible method of reducing IHT, from simple gifting to advanced trust structures.
The case studies and worked examples help illustrate the effectiveness of different tax strategies, allowing readers to see how changes to their estate plan could impact their tax liability.
While the book provides numerous strategies and examples, estate planning is highly personal and almost every situation is different. Some solutions may fit while others may not be suitable for everyone. Readers may still need professional advice tailored to their specific circumstances.
However, after reading the book you will have a solid grounding in the principles and practicalities of tax planning for IHT and capital gains, something to take to an advisor as a knowledgeable basis for your plans.
Tax laws evolve and in the current situation, quite fast. Be prepared to keep an eye on developments and add any new information and changes that come along to the principles outlined in the book. You can be assured the book is up to date at the time of this review, just be prepared to check for the latest legal changes or when you consult a tax adviser.
This book will be of value to homeowners, landlords, business owners, farmers, and anyone with a significant estate who wants to minimize their family’s IHT bill. It will also be of use to professionals: letting agents, financial advisers, accountants, and solicitors looking for a clear explanation of IHT rules.
Carl Bayley’s Shelter Your Family from the Taxman: How to Save Inheritance Tax is a valuable resource for anyone with assets subject to IHT and is serious about inheritance tax planning.
The book balances technical accuracy with easier layman’s accessibility, offering practical solutions to one of the biggest financial burdens UK families face today.
No book will replace expert professional advice. However, this book provides an excellent foundation for understanding and implementing tax-saving strategies.
* The Laffer Curve - an economic theory that says if tax rates are too low, the government won't generate enough revenue but If tax rates are too high, they discourage investment and consumption, which can reduce government revenue.
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